Splurge Electronics Sells Homework Machines for $80 Each

question 69

Multiple Choice

Splurge Electronics sells homework machines for $80 each.Variable costs per unit are $45 and total fixed costs are $43,750.Splurge is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5.At that level, Splurge Electronics expects it can sell 1,500 units next year.What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant? (Round your answer to the nearest whole number.)

• A)1,250 units
• B)1,218 units
• C)650 units
• D)2,312 units

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Definitions:

Customer Journey

The complete sequence of experiences that customers go through when interacting with a company and its products or services, from initial awareness to post-purchase.

Touchpoints

Refers to the various points of interaction between a brand and its customers, across different channels and moments in the customer journey.

Normative Stakeholder

An entity or individual that affects or is affected by an organization's actions, based on normative (ethical or moral) standards and expectations.

Functional Stakeholder

An individual or group that has an interest in a company's operations, products, or services due to their functional role or needs.